When you operate a small business, you are under the same obligation as large corporations to treat employees equally. Equal treatment not only promotes good employee morale, it is a requirement of federal law in many instances. You must know how to treat employees equally and make sure that they know you are aware of the importance of fair treatment. This will help you avoid a host of problems that can disrupt--or even stop--your business.

1. Review hiring fairness guidelines. The Equal Employment Opportunity Commission closely monitors hiring practices to make sure no one is excluded from employment for reasons of race, gender, sexual orientation or genetic makeup. This means much more than making sure you hire based on qualifications. For example, you are not allowed to send out a questionnaire asking for an applicant's racial background before an interview.

2. Promote equally. Promotions and coveted positions should be given based on qualifications and improvement. Employees may complain if they perceive that a specific class of people are getting the promotions. Document all of your decisions so that you can justify promotions and special assignments based on employee performance, not employee profiles.

3. Give equal benefits. Some employers have tried to justify giving better benefits to certain employees, such as executives, but such cases have rarely held up in court. One exception is part-time employees. You are not under an obligation to offer part-time employees benefits.

4. Fire judiciously. Firing an employee can expose you to complaints and lawsuits. Document all of your efforts to discipline or re-train an employee who is not performing up to standards. Also make sure you have communicated the guidelines for firing employees. You have a right to fire an employee who violates company policy or the law, or who alienates customers. If you offer severence pay, this may soften the blow and prevent a lawsuit.

About the Author

Kevin Johnston writes for Ameriprise Financial, the Rutgers University MBA Program and Evan Carmichael. He has written about business, marketing, finance, sales and investing for publications such as "The New York Daily News," "Business Age" and "Nation's Business." He is an instructional designer with credits for companies such as ADP, Standard and Poor's and Bank of America.